Week 8 - Organisations and Information Systems

A problem always needs a solution and different people have different view points to solve a problem.

The ingredients of a system are components, the relationship between the components, the behavior or activities of a system, its relevant environment, the input and the output and special interest of the observer.

A system is an organized assembly of components.

We went through the difference between a system and a heap.

Ackoff suggests that there are 3 steps process of analysis:

Take something apart, understand what the parts do and aggregate the understanding of the parts into understanding of the whole

Viable Systems Model (VSM) - VSM was developed by Stafford Beer. VSM has been used as a conceptual tool for understanding organisations, redesigning them and supporting the management of change. The VSM looks at a company as it is a living thing and describes how it should structure to operate most effectively in the environment.

Beer's studies led him to view human form as five interacting systems
System 1 : activities and operations of the body (muscles and organs)
System 2 : Monitoring (Nervous system monitoring the muscles and organs)
System 3 : Autonomous control (Part of the brain which oversees the entire system of muscles and organs)
System 4 : The mid brain (Scanning environment through senses, future planning and projections)
System 5 : Higher brain functions, policy decisions

Five systems of the VSM
System 1 : The entire collection of interacting operational units
System 2 : The system responsible for coordination of operational units
System 3 : Autonomous
System 4 : Intelligence
System 5 : Policy

Using information systems effectively requires an understanding of the organisation (culture, people, process & information technology shaping the systems)
An information system creates values to the firm as an organisational and management solution to challenges that are posed by the environment

Week 7 - Managing resources and Security

Security should be a management priority and not an IT issue. Security is always a negative deliverable to the business, but it cannot be avoided as it's like we accepting security risks.

Types of security threats : Unauthorized data disclosure, Incorrect data modification, faulty service, denial of service and loss of infrastructure

Internal company threats : The ill willed employees who intentionally sells customer database to outsiders. Not destroying sensitive data as per the schedules planned by the company

How to respond to these internal threats : Strict security policies and ensure that every employee understand the code of conduct of the company and follows the same.

Risk Mitigation strategies : There are three risk mitigation strategies:
Risk Acceptance : Not investing time and money in countermeasures but just accepting the risk of security breach.
Risk Reduction : Actively investing in the safeguards designed to mitigate the security threats and investing in the security protection
Risk transference : Passing a portion of the risk that the company encountered to a third party

There are lot of internet related threats as well like : Denial of service, Brand abuse, cybersquatting, cyberstalking, cyberterrorism, online stock fraud, social engineering and phishing. To manage the internet threats we have a range of software applications that needs to be installed, like firewalls, intrusion detection softwares and Artificial intelligence softwares

In 1984, data protection act was formulated which had the following 8 principles:

1. Fairly and lawfully processed

2. Processed for limited purposes

3. Adequate, relevant and not excessive

4. Accurate and up-to-date

5. Not kept for longer than necessary

6. Processed in accordance with individual’s rights

7. Kept secure from unauthorised access/destruction

8. Not transferred to countries outside EEA unless 

The 1984, data protection act did not cover the data protection online, as internet technology came into existence only in the early 1990s. So in 2003, we had the privacy and  electronic communications act.


 

Week 6 - E-Commerce

Definitions of E-Commerce and E-Business
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E-Commerce - Transactions between an organisation and its suppliers and customers.
E-Business - The transformation of key business processes through the use of internet technologies.

E-Commerce can also be described as the subset of E-Business.

We learned about the company Boo.com who were the pioneers in introducing the Avatar model to the world, where the customer can choose his clothing online. Boo.com was not successful among customers as it had lot of technological glitch due to the poor internet speed in early 1990s. Due to this Boo.com which spent a lot of money on its technology went on to face huge loss.

Nowadays internet has become the integral part of every employee. E-Business application like Yammer a cloud based enterprise social network tool, which is used for business communications within the organisation. Ford, Pitney Bowes are among many who this tool to communicate within their organisation.

Also, now a days most of the games, movies are available online, you just have to pay for the game or the movie and just download the same to the computer, you are no longer required to use a cd/dvd to install games or watch movies.

There are 8 unique features of e-commerce technology, they are:
Ubiquity, Global reach, Universal standards, Richness,Interactivity, Information density, Personalization and Social technology

We can categorize business models according to:
-E-Commerce sector (B2B, B2C, C2C)
- Type of e-commerce technology i.e. m-commerce
- Some companies like e-bay apply multiple business models.

Firm Value Chains are the activities that a firm engages in to create final products from raw inputs

Firm Value Webs are Network business ecosystems. It uses the internet technology to coordinate the value chains of business partners within an industry/within a group of firms.

A virtual organisation is a flexible organisation dynamically built from components of existing organisations. It is characterized by quick assembly and disassemsbly, as well as sharing of components among multiple organisations.

Week5-Topic5-Decision Management

Decision Behaviour:

The way the managers make most of their decisions is called decision behaviour. The behaviour can be classified as structured and unstructured. When the rules and the constraints governing the decision is already known it is called structured decision behaviour. Complex situations where the rules governing the situation are complicated is known as unstructured decision behaviour.

Usually a manager will fall into one of the two areas: Analytical Manager and Intuitive Manager.

Analytical manager : They tend to make use of figures, quantitative data

Intuitive manager : They concentrate more looking at the situation as a whole rather than independent parts, qualitative data

Decision model framework shows how a decision moves through 5 different stages.Each stage much be completed first before moving on to the next stage. The 5 stages are Intelligence, Design, Choice, Implement decision and Evaluation of decision.

Systems that support managerial decisions can be categorised into the following types : Management Information System (MIS), Decision Support System (DSS) and Executive Information System (EIS)

Management Information System(MIS) is a system that provides information needed to manage organizations effectively. Management information systems involve three primary resources: technology, information, and people, and the most important resource is people, the information that we get supports the routine decision making in the functional areas.

 

Decision Support System(DSS) is used to model data and make quality decision based on the data, making the right decision is usually based on the quality of the  data and one's ability to analyze the data. Decision Support Systems are usually computer applications with a human component. They can shift through large amounts of data and pick between the many choices and supports the non – routine decision.

Executive Information System(EIS) provide senior managers with systems to analyse compare and highlight trends to help govern strategic direction of a company.

Week4-Topic4-Systems in small businesses

The number of employees and either turnover or balance sheet total are the factors that determine whether the company is an SME or not.

Learnt about Mintzberg's organisational structure and simple structure.

The four basic steps for a small business to systemisation are :
1. Flowchart each process in the business
2. Document how it gets done
3. Measure using key performance indicators
4. Allow the system to change/grow

Key systems for small businesses:
Lead generation - Marketing
Lead conversion - Selling
Client Fulfillment - delivering value

Objectives of systemisation in small business:
Reduces risk by enabling the employees to perform a range of processes by following set procedures
Enables work to be allocated to the lowest possible cost source
Allows measurement and improvement of the business processes
Frees up the owner in procuring new business
Allows the owner to be away from business once processes are set and followed
Paves the way to being the business of value that can be sold
Paves the way for using the more complex information systems that will improve management information allowing greater control on the business

Use of information systems in micro business:
Micro businesses in their first year will make limited use of systems, concentrating on demand creation: Website, Google analytics, Facebook, twitter etc.
They need to manage their finances using softwares like spreadsheet or kashflow(cloud based system)
The Information systems will be implemented out of box with no concern for the associated processes
The owner faces a crisis for being overworked; working in the business rather than working on the business. This leads to a need to implement business processes.

Mature Micro Business:
A mature micro business will have an accounting software that enables them to keep a track of financial performance of the company
With less than 10 employees communication will be easy although managing leads, prospects, sales and customers maybe increasingly complex, so the business should look for a Customer Relationship Management software.
Also, the potential use of ERP system may also occur

When we grow from a Micro business to Small business:
Sharing of information becomes very important
The increasing size of the organization leads to more complex buying decisions
Do we go for a best software or take an integrated software solution from SAP, Microsoft or other vendor
Do we hire consultants or do we look for supplier who will provide end to end service.

 

Week3-Topic3-Snowden's Cynefin framework

Sense Making : Sense Making is what people continuously do to work out what is going on in their situations, where they fit and what the need for action.

Dervin, Weick and Snowden are the three big names associated with different approaches in the study of sense making.

Dervin relates sense making to knowledge management. Also, states knowledge as a verb, it is dynamic, forever changing, which has implications for systems that try to store and transfer knowledge

Weick says sense making has to following characteristics : Grounded in identity construction, Retrospective, Inactive of sensible environments, social, ongoing, focused on and by extracted cues and driven by plausibility rather than accuracy.

Snowden's framework says that sense making can be in any of the five environments. Simple, Complicated, Complex, Chaos and disordered

Simple domain : Simple problems - known solutions. Here the knowledge is readily available and can be applied. Often termed as best practice. Action is : Sense - Categorise - Respond

Complicated domain : Complicated problems - knowable solutions. We will have varied solutions to the problem, we may require training or expert's knowledge to solve the problem. Action is : Sense - Analyse - Respond

Complex domain : Complex problems - unknown solutions. It's an experimental practice, innovation. Knowledge is developing along with the problem. Action is : Probe - Sense - Respond.

Chaos domain : Unknown problems - unknown solutions. Crisis management. Action is : Act-Sense-Respond

Implications of sense-making :
Systems that involve humans are messy, unpredictable in different ways and forever changing, such systems are often complex and self-modifying.

A grounded KMSD methodology : Sense-making, envisioning, designing, exploring and evolving

A simplified KMSD methodology : Sense-making, envisioning, designing and exploring

Wee2-Topic2-Knowledge Management

Definition of Knowledge Management :
A broad range of activities related to ensuring an organisation makes the best use of its information services.

Knowledge can be classified into two categories : Tacit and Explicit
Explicit knowledge is formal and systematic and can be expressed in a specific language and processed and transmitted easily

Tacit knowledge is deeply influenced by ideas, commitment, beliefs, values and emotions. It is highly personal and difficult to formalise and transmit

We learnt about the SECI (Socialization, Externalization, Combination, Internalization) model.

The organization can go into two extremes in their KM practices they are capture and connectivity.
Capture : a) Activities that relate to the codification of knowledge. b) Organizations that invest heavily in creating and distributing explicit knowledge, c) Create information packs, knowledge bases and websites

Connectivity : a) Activities that relate to stimulating connections between people b) Transfer of explicit knowledge c) Sharing knowledge through experience, peer interactions, workshops and communities of practice

Embedding knowledge management into everyday working practices helps move the organisations into a state of continuous learning and innovation
1. Unconscious incompetence
2. Conscious incompetence
3. Conscious competence
4. Unconscious competence